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| Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024 |
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| 4:07p ET March 20 '24 GlobeNewswire |
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| Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024AI demand and tight supply accelerate return to profitabilityGlobeNewswireMarch 20, 2024 BOISE, Idaho, March 20, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2024, which ended February 29, 2024. Fiscal Q2 2024 highlights Revenue of $5.82 billion versus $4.73 billion for the prior quarter and $3.69 billion for the same period last yearGAAP net income of $793 million, or $0.71 per diluted shareNon-GAAP net income of $476 million, or $0.42 per diluted shareOperating cash flow of $1.22 billion versus $1.40 billion for the prior quarter and $343 million for the same period last year"Micron delivered fiscal Q2 results with revenue, gross margin and EPS well above the high-end of our guidance range -- a testament to our team's excellent execution on pricing, products and operations," said Sanjay Mehrotra, President and CEO of Micron Technology. "Our preeminent product portfolio positions us well to deliver a strong fiscal second half of 2024. We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI." Quarterly Financial Results(in millions, except per share amounts)GAAP(1)Non-GAAP(2)FQ2-24FQ1-24FQ2-23FQ2-24FQ1-24FQ2-23Revenue$5,824$4,726$3,693$5,824$4,726$3,693Gross margin1,079(35)(1,206)1,16337(1,161)percent of revenue18.5%(0.7%)(32.7%)20.0%0.8%(31.4%)Operating expenses8881,0931,097959992916Operating income (loss)191(1,128)(2,303)204(955)(2,077)percent of revenue3.3%(23.9%)(62.4%)3.5%(20.2%)(56.2%)Net income (loss)793(1,234)(2,312)476(1,048)(2,081)Diluted earnings (loss) per share0.71(1.12)(2.12)0.42(0.95)(1.91)Investments in capital expenditures, net(2) were $1.25 billion for the second quarter of 2024, which resulted in adjusted free cash flows(2) of negative $29 million. Micron ended the second quarter of 2024 with cash, marketable investments, and restricted cash of $9.72 billion. On March 20, 2024, Micron's Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 16, 2024, to shareholders of record as of the close of business on April 1, 2024. Business Outlook The following table presents Micron's guidance for the third quarter of 2024: FQ3-24GAAP(1) OutlookNon-GAAP(2) OutlookRevenue$6.60 billion ± $200 million$6.60 billion ± $200 millionGross margin25.5% ± 1.5%26.5% ± 1.5%Operating expenses$1.11 billion ± $15 million$990 million ± $15 millionDiluted earnings per share$0.17 ± $0.07$0.45 ± $0.07Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com. Investor Webcast Micron will host a conference call on Wednesday, March 20, 2024 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech. About Micron Technology, Inc. We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron(R) and Crucial(R) brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities -- from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com. (C) 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements regarding our industry, our strategic position, technology trends and developments, market demand, and our financial and operating results, including our guidance for the third quarter of 2024. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results. (1)GAAP represents U.S. Generally Accepted Accounting Principles.(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited)2nd Qtr.1st Qtr.2nd Qtr.Six months endedFebruary 29,2024November 30,2023March 2,2023February 29,2024March 2,2023Revenue$5,824$4,726$3,693$10,550$7,778Cost of goods sold4,7454,7614,8999,5068,091Gross margin1,079(35)(1,206)1,044(313)Research and development8328457881,6771,637Selling, general, and administrative280263231543482Restructure and asset impairments----86--99Other operating (income) expense, net(224)(15)(8)(239)(19)Operating income (loss)191(1,128)(2,303)(937)(2,512)Interest income130132119262207Interest expense(144)(132)(89)(276)(140)Other non-operating income (expense), net(7)(27)2(34)(2)170(1,155)(2,271)(985)(2,447)Income tax (provision) benefit622(73)(54)549(62)Equity in net income (loss) of equity method investees1(6)13(5)2Net income (loss)$793$(1,234)$(2,312)$(441)$(2,507)Earnings (loss) per shareBasic$0.72$(1.12)$(2.12)$(0.40)$(2.30)Diluted0.71(1.12)(2.12)(0.40)(2.30)Number of shares used in per share calculationsBasic1,1041,1001,0911,1021,091Diluted1,1141,1001,0911,1021,091MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)As ofFebruary 29,2024November 30,2023August 31,2023AssetsCash and equivalents$8,016$8,075$8,577Short-term investments9909731,017Receivables4,2962,9432,443Inventories8,4438,2768,387Other current assets1,690791820Total current assets23,43521,05821,244Long-term marketable investments627720844Property, plant, and equipment37,58737,67737,928Operating lease right-of-use assets642648666Intangible assets414416404Deferred tax assets664781756Goodwill1,1501,1501,150Other noncurrent assets1,1991,3261,262Total assets$65,718$63,776$64,254Liabilities and equityAccounts payable and accrued expenses$4,680$3,946$3,958Current debt344908278Other current liabilities1,2351,108529Total current liabilities6,2595,9624,765Long-term debt13,37812,59713,052Noncurrent operating lease liabilities593601603Noncurrent unearned government incentives662705727Other noncurrent liabilities9561,026987Total liabilities21,84820,89120,134Commitments and contingenciesShareholders' equityCommon stock125124124Additional capital11,56411,21711,036Retained earnings39,99739,35640,824Treasury stock(7,552)(7,552)(7,552)Accumulated other comprehensive income (loss)(264)(260)(312)Total equity43,87042,88544,120Total liabilities and equity$65,718$63,776$64,254MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)Six months endedFebruary 29,2024March 2,2023Cash flows from operating activitiesNet income (loss)$(441)$(2,507)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation expense and amortization of intangible assets3,8393,863Stock-based compensation401303Provision to write-down inventories to net realizable value--1,430Change in operating assets and liabilities:Receivables(1,759)2,910Inventories(57)(2,896)Other current assets(799)4Accounts payable and accrued expenses573(1,144)Other current liabilities706(638)Other157(39)Net cash provided by operating activities2,6201,286Cash flows from investing activitiesExpenditures for property, plant, and equipment(3,180)(4,654)Purchases of available-for-sale securities(465)(293)Proceeds from maturities and sales of available-for-sale securities726773Proceeds from government incentives23464Other(24)(71)Net cash provided by (used for) investing activities(2,709)(4,181)Cash flows from financing activitiesRepayments of debt(1,101)(53)Payments of dividends to shareholders(256)(252)Payments on equipment purchase contracts(82)(76)Repurchases of common stock - repurchase program--(425)Proceeds from issuance of debt9995,221Other(18)19Net cash provided by (used for) financing activities(458)4,434Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash(8)9Net increase (decrease) in cash, cash equivalents, and restricted cash(555)1,548Cash, cash equivalents, and restricted cash at beginning of period8,6568,339Cash, cash equivalents, and restricted cash at end of period$8,101$9,887MICRON TECHNOLOGY, INC.NOTES(Unaudited)(All tabular amounts in millions)Inventories In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable value ("NRV"). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below: 2nd Qtr.1st Qtr.2nd Qtr.Six months endedFebruary 29,2024November 30,2023March 2,2023February 29,2024March 2,2023Provision to write down inventory to NRV$--$--$(1,430)$--$(1,430)Lower costs from sale of inventory written down in prior periods382605--987--$382$605$(1,430)$987$(1,430)Income Tax For the first quarter of 2024, we recorded tax expense based on actual first quarter results, as small changes in our projected pre-tax income cause significant changes in the estimated annual effective tax rate. With our improved fiscal 2024 outlook, we can now estimate a more reliable annual effective tax rate and have reverted to a global annual effective tax rate method. The second fiscal quarter tax benefit arises from applying this estimated annual effective tax rate to our year-to-date results. MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)2nd Qtr.1st Qtr.2nd Qtr.February 29,2024November 30,2023March 2,2023GAAP gross margin$1,079$(35)$(1,206)Stock-based compensation806741Other454Non-GAAP gross margin$1,163$37$(1,161)GAAP operating expenses$888$1,093$1,097Stock-based compensation(129)(115)(95)Restructure and asset impairments----(86)Patent cross-license agreement gain200----Other--14--Non-GAAP operating expenses$959$992$916GAAP operating income (loss)$191$(1,128)$(2,303)Stock-based compensation209182136Restructure and asset impairments----86Patent cross-license agreement gain(200)----Other4(9)4Non-GAAP operating income (loss)$204$(955)$(2,077)GAAP net income (loss)$793$(1,234)$(2,312)Stock-based compensation209182136Restructure and asset impairments----86Patent cross-license agreement gain(200)----Other2(10)8Estimated tax effects of above and other tax adjustments(1)(328)141Non-GAAP net income (loss)$476$(1,048)$(2,081)GAAP weighted-average common shares outstanding - Diluted1,1141,1001,091Adjustment for stock-based compensation20----Non-GAAP weighted-average common shares outstanding - Diluted1,1341,1001,091GAAP diluted earnings (loss) per share$0.71$(1.12)$(2.12)Effects of the above adjustments(0.29)0.170.21Non-GAAP diluted earnings (loss) per share$0.42$(0.95)$(1.91)(1) As described in the Income Tax note above, the second fiscal quarter tax benefit arises from applying our estimated annual effective tax rate to our year-to-date results. A portion of this benefit is included in our non-GAAP net income, with a larger benefit in our GAAP net income. The divergence between the GAAP and non-GAAP amounts of this tax benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately. RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued2nd Qtr.1st Qtr.2nd Qtr.February 29,2024November 30,2023March 2,2023GAAP net cash provided by operating activities$1,219$1,401$343Expenditures for property, plant, and equipment(1,384)(1,796)(2,205)Payments on equipment purchase contracts(26)(56)(29)Proceeds from sales of property, plant, and equipment133317Proceeds from government incentives1498562Investments in capital expenditures, net(1,248)(1,734)(2,155)Adjusted free cash flow$(29)$(333)$(1,812)The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items in analyzing our operating results and understanding trends in our earnings: Stock-based compensation;Gains and losses from settlements;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss). MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ3-24GAAP OutlookAdjustmentsNon-GAAP OutlookRevenue$6.60 billion ± $200 million--$6.60 billion ± $200 millionGross margin25.5% ± 1.5%1.0%A26.5% ± 1.5%Operating expenses$1.11 billion ± $15 million$123 millionB$990 million ± $15 millionDiluted earnings per share(1)$0.17 ± $0.07$0.28A, B, C$0.45 ± $0.07Non-GAAP Adjustments(in millions)AStock-based compensation - cost of goods sold$78AOther - cost of goods sold4BStock-based compensation - research and development76BStock-based compensation - sales, general, and administrative47CTax effects of the above items and other tax adjustments107$312(1) GAAP earnings per share based on approximately 1.11 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 billion diluted shares. The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control. | Contacts:
Satya Kumar
Investor Relations
satyakumar@micron.com
(408) 450-6199
Erica Rodriguez Pompen
Media Relations
epompen@micron.com
(408) 834-1873 | |
COMTEX_449565376/2010/2024-03-20T16:07:08 BOISE, Idaho, March 20, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2024, which ended February 29, 2024. Fiscal Q2 2024 highlights Revenue of $5.82 billion versus $4.73 billion for the prior quarter and $3.69 billion for the same period last yearGAAP net income of $793 million, or $0.71 per diluted shareNon-GAAP net income of $476 million, or $0.42 per diluted shareOperating cash flow of $1.22 billion versus $1.40 billion for the prior quarter and $343 million for the same period last year"Micron delivered fiscal Q2 results with revenue, gross margin and EPS well above the high-end of our guidance range -- a testament to our team's excellent execution on pricing, products and operations," said Sanjay Mehrotra, President and CEO of Micron Technology. "Our preeminent product portfolio positions us well to deliver a strong fiscal second half of 2024. We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI." Quarterly Financial Results(in millions, except per share amounts)GAAP(1)Non-GAAP(2)FQ2-24FQ1-24FQ2-23FQ2-24FQ1-24FQ2-23Revenue$5,824$4,726$3,693$5,824$4,726$3,693Gross margin1,079(35)(1,206)1,16337(1,161)percent of revenue18.5%(0.7%)(32.7%)20.0%0.8%(31.4%)Operating expenses8881,0931,097959992916Operating income (loss)191(1,128)(2,303)204(955)(2,077)percent of revenue3.3%(23.9%)(62.4%)3.5%(20.2%)(56.2%)Net income (loss)793(1,234)(2,312)476(1,048)(2,081)Diluted earnings (loss) per share0.71(1.12)(2.12)0.42(0.95)(1.91)Investments in capital expenditures, net(2) were $1.25 billion for the second quarter of 2024, which resulted in adjusted free cash flows(2) of negative $29 million. Micron ended the second quarter of 2024 with cash, marketable investments, and restricted cash of $9.72 billion. On March 20, 2024, Micron's Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 16, 2024, to shareholders of record as of the close of business on April 1, 2024. Business Outlook The following table presents Micron's guidance for the third quarter of 2024: FQ3-24GAAP(1) OutlookNon-GAAP(2) OutlookRevenue$6.60 billion ± $200 million$6.60 billion ± $200 millionGross margin25.5% ± 1.5%26.5% ± 1.5%Operating expenses$1.11 billion ± $15 million$990 million ± $15 millionDiluted earnings per share$0.17 ± $0.07$0.45 ± $0.07Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com. Investor Webcast Micron will host a conference call on Wednesday, March 20, 2024 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech. About Micron Technology, Inc. We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron(R) and Crucial(R) brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities -- from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com. (C) 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements regarding our industry, our strategic position, technology trends and developments, market demand, and our financial and operating results, including our guidance for the third quarter of 2024. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results. (1)GAAP represents U.S. Generally Accepted Accounting Principles.(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited)2nd Qtr.1st Qtr.2nd Qtr.Six months endedFebruary 29,2024November 30,2023March 2,2023February 29,2024March 2,2023Revenue$5,824$4,726$3,693$10,550$7,778Cost of goods sold4,7454,7614,8999,5068,091Gross margin1,079(35)(1,206)1,044(313)Research and development8328457881,6771,637Selling, general, and administrative280263231543482Restructure and asset impairments----86--99Other operating (income) expense, net(224)(15)(8)(239)(19)Operating income (loss)191(1,128)(2,303)(937)(2,512)Interest income130132119262207Interest expense(144)(132)(89)(276)(140)Other non-operating income (expense), net(7)(27)2(34)(2)170(1,155)(2,271)(985)(2,447)Income tax (provision) benefit622(73)(54)549(62)Equity in net income (loss) of equity method investees1(6)13(5)2Net income (loss)$793$(1,234)$(2,312)$(441)$(2,507)Earnings (loss) per shareBasic$0.72$(1.12)$(2.12)$(0.40)$(2.30)Diluted0.71(1.12)(2.12)(0.40)(2.30)Number of shares used in per share calculationsBasic1,1041,1001,0911,1021,091Diluted1,1141,1001,0911,1021,091MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)As ofFebruary 29,2024November 30,2023August 31,2023AssetsCash and equivalents$8,016$8,075$8,577Short-term investments9909731,017Receivables4,2962,9432,443Inventories8,4438,2768,387Other current assets1,690791820Total current assets23,43521,05821,244Long-term marketable investments627720844Property, plant, and equipment37,58737,67737,928Operating lease right-of-use assets642648666Intangible assets414416404Deferred tax assets664781756Goodwill1,1501,1501,150Other noncurrent assets1,1991,3261,262Total assets$65,718$63,776$64,254Liabilities and equityAccounts payable and accrued expenses$4,680$3,946$3,958Current debt344908278Other current liabilities1,2351,108529Total current liabilities6,2595,9624,765Long-term debt13,37812,59713,052Noncurrent operating lease liabilities593601603Noncurrent unearned government incentives662705727Other noncurrent liabilities9561,026987Total liabilities21,84820,89120,134Commitments and contingenciesShareholders' equityCommon stock125124124Additional capital11,56411,21711,036Retained earnings39,99739,35640,824Treasury stock(7,552)(7,552)(7,552)Accumulated other comprehensive income (loss)(264)(260)(312)Total equity43,87042,88544,120Total liabilities and equity$65,718$63,776$64,254MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)Six months endedFebruary 29,2024March 2,2023Cash flows from operating activitiesNet income (loss)$(441)$(2,507)Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation expense and amortization of intangible assets3,8393,863Stock-based compensation401303Provision to write-down inventories to net realizable value--1,430Change in operating assets and liabilities:Receivables(1,759)2,910Inventories(57)(2,896)Other current assets(799)4Accounts payable and accrued expenses573(1,144)Other current liabilities706(638)Other157(39)Net cash provided by operating activities2,6201,286Cash flows from investing activitiesExpenditures for property, plant, and equipment(3,180)(4,654)Purchases of available-for-sale securities(465)(293)Proceeds from maturities and sales of available-for-sale securities726773Proceeds from government incentives23464Other(24)(71)Net cash provided by (used for) investing activities(2,709)(4,181)Cash flows from financing activitiesRepayments of debt(1,101)(53)Payments of dividends to shareholders(256)(252)Payments on equipment purchase contracts(82)(76)Repurchases of common stock - repurchase program--(425)Proceeds from issuance of debt9995,221Other(18)19Net cash provided by (used for) financing activities(458)4,434Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash(8)9Net increase (decrease) in cash, cash equivalents, and restricted cash(555)1,548Cash, cash equivalents, and restricted cash at beginning of period8,6568,339Cash, cash equivalents, and restricted cash at end of period$8,101$9,887MICRON TECHNOLOGY, INC.NOTES(Unaudited)(All tabular amounts in millions)Inventories In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable value ("NRV"). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below: 2nd Qtr.1st Qtr.2nd Qtr.Six months endedFebruary 29,2024November 30,2023March 2,2023February 29,2024March 2,2023Provision to write down inventory to NRV$--$--$(1,430)$--$(1,430)Lower costs from sale of inventory written down in prior periods382605--987--$382$605$(1,430)$987$(1,430)Income Tax For the first quarter of 2024, we recorded tax expense based on actual first quarter results, as small changes in our projected pre-tax income cause significant changes in the estimated annual effective tax rate. With our improved fiscal 2024 outlook, we can now estimate a more reliable annual effective tax rate and have reverted to a global annual effective tax rate method. The second fiscal quarter tax benefit arises from applying this estimated annual effective tax rate to our year-to-date results. MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)2nd Qtr.1st Qtr.2nd Qtr.February 29,2024November 30,2023March 2,2023GAAP gross margin$1,079$(35)$(1,206)Stock-based compensation806741Other454Non-GAAP gross margin$1,163$37$(1,161)GAAP operating expenses$888$1,093$1,097Stock-based compensation(129)(115)(95)Restructure and asset impairments----(86)Patent cross-license agreement gain200----Other--14--Non-GAAP operating expenses$959$992$916GAAP operating income (loss)$191$(1,128)$(2,303)Stock-based compensation209182136Restructure and asset impairments----86Patent cross-license agreement gain(200)----Other4(9)4Non-GAAP operating income (loss)$204$(955)$(2,077)GAAP net income (loss)$793$(1,234)$(2,312)Stock-based compensation209182136Restructure and asset impairments----86Patent cross-license agreement gain(200)----Other2(10)8Estimated tax effects of above and other tax adjustments(1)(328)141Non-GAAP net income (loss)$476$(1,048)$(2,081)GAAP weighted-average common shares outstanding - Diluted1,1141,1001,091Adjustment for stock-based compensation20----Non-GAAP weighted-average common shares outstanding - Diluted1,1341,1001,091GAAP diluted earnings (loss) per share$0.71$(1.12)$(2.12)Effects of the above adjustments(0.29)0.170.21Non-GAAP diluted earnings (loss) per share$0.42$(0.95)$(1.91)(1) As described in the Income Tax note above, the second fiscal quarter tax benefit arises from applying our estimated annual effective tax rate to our year-to-date results. A portion of this benefit is included in our non-GAAP net income, with a larger benefit in our GAAP net income. The divergence between the GAAP and non-GAAP amounts of this tax benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately. RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued2nd Qtr.1st Qtr.2nd Qtr.February 29,2024November 30,2023March 2,2023GAAP net cash provided by operating activities$1,219$1,401$343Expenditures for property, plant, and equipment(1,384)(1,796)(2,205)Payments on equipment purchase contracts(26)(56)(29)Proceeds from sales of property, plant, and equipment133317Proceeds from government incentives1498562Investments in capital expenditures, net(1,248)(1,734)(2,155)Adjusted free cash flow$(29)$(333)$(1,812)The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items in analyzing our operating results and understanding trends in our earnings: Stock-based compensation;Gains and losses from settlements;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss). MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ3-24GAAP OutlookAdjustmentsNon-GAAP OutlookRevenue$6.60 billion ± $200 million--$6.60 billion ± $200 millionGross margin25.5% ± 1.5%1.0%A26.5% ± 1.5%Operating expenses$1.11 billion ± $15 million$123 millionB$990 million ± $15 millionDiluted earnings per share(1)$0.17 ± $0.07$0.28A, B, C$0.45 ± $0.07Non-GAAP Adjustments(in millions)AStock-based compensation - cost of goods sold$78AOther - cost of goods sold4BStock-based compensation - research and development76BStock-based compensation - sales, general, and administrative47CTax effects of the above items and other tax adjustments107$312(1) GAAP earnings per share based on approximately 1.11 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 billion diluted shares. The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control. | Contacts:
Satya Kumar
Investor Relations
satyakumar@micron.com
(408) 450-6199
Erica Rodriguez Pompen
Media Relations
epompen@micron.com
(408) 834-1873 | |
COMTEX_449565376/2010/2024-03-20T16:07:08 |
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